[ad_1]
Its price fell more than 10% Wednesday, reaching its lowest level in more than a year. It is now trading below $ 6,000, far from the peaks achieved during its meteoric rise at the end of 2017.
After nearly 20,000 dollars in December 2017, the value of Bitcoin plunged into volatile transactions in the months that followed. But it has experienced a period of relative stability since early September, oscillating between $ 6,000 and $ 7,000.
Although some people have managed to enrich themselves by trading digital currencies, most investors are only too aware of the rapid and unpredictable price fluctuations.
Volatility comes from sudden changes in the perceived value of cryptocurrencies. Like stock prices, crypto-currencies are influenced by supply and demand – but the hype also plays a major role in unclear and unregulated markets, where some investors have huge holdings.
Triggers such as alarming information and rumors of tighter regulation of the sector can lead to big changes in the cryptography markets.
The fall of Bitcoin on Wednesday was motivated in part by expectations that another major cryptocurrency, the cash bitcoin, will be split in two on Thursday, according to Marshall Hayner, founder of Metal Pay, a crypto-monetary payment service.
Although bitcoin and cash bitcoin are separate, such events can feed uncertainty and lead to crazy volatility in cryptography markets.
Hayner said that bitcoin would likely be under pressure from hope the market will firm up before the end of the year.
While the price of bitcoin reached $ 20,000 by the end of last year, some of its boosters were optimistically predicting that it could reach $ 50,000 in 2018.
Source link
